Thailand’s MINT scales up investment budget to acquire distressed hopitality assets

Visual from the company website. September 2015

Thai hotel group Minor International Pcl (MINT) is considering increasing the budget for its 5-years investment plan during 2016-20 in order to acquire the assets that become cheaper due to the global economic slowdown.

Meanwhile, it plans to acquire the remaining eight hotels of Tivoli Hotels and Resorts in Portugal. This is a part of its aggressive expansion in the overseas market. During the beginning of this year, it had acquired four hotels in Portugal and two in Brazil from Tivoli for around $200 million.

MINT’s vice president of strategic planning, Chaiyapat Paitoon said that the new plan was expected to be proposed to the company’s board of directors, for approval in October.

“Our new investment plan will be adjusted in line with the world’s uncertain economy by considering the interest rate change in the United States and the slowdown economy in China. It’s likely that we will add more budget from earlier planned 52 billion baht,” he said.

Of that, around 20 billion baht will be used to explore new business opportunities and the rest will go toward acquiring the assets globally.The company targets a net profit growth of 15-20 per cent per year.

In the next five years, it would like to have at least 190 hotels, up from current number 133, 400 property projects from presently owned 71 and 3,300 restaurants, which is almost double the 1,747 restaurant it has at present.

Chaiyapat said that the net profit this year is expected to the highest ever, much more than the 4.4 billion baht last year. The company has already managed to increase its net profit for the first six months by 32 per cent (from the same period last year). This is mostly due to the profit from Sun International Ltd, which was acquired by MINT in 2014.

To achieve its target revenue growth of 12-14 per cent each year, the company will focus on three strategies: increase the profit margin for its own brand, renovate and add more value to its hotel assets, and to invest and acquire good assets.

Related stories:

Thai hotel chain MINT to takeover all Tivoli hotels in Portugal

Thailand’s MINT makes two acquisitions in Australia for $42m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.